Teladoc Health, once a prominent player in the telehealth industry, saw its star power fade after releasing its first-quarter earnings. The company, like many others that experienced a surge in business during the pandemic, has struggled to maintain its momentum in the current market. Following the release of its financial results, Teladoc’s stock price dropped by more than 2%, in contrast to the S&P 500 index’s 1% increase.
The company reported a 3% year-over-year increase in revenue to $646 million for the quarter, showing some positive growth. However, its net loss deepened to nearly $82 million, a significant increase from the previous year. Analyst estimates for Teladoc were mixed, with revenue slightly above expectations but a net loss slightly wider than anticipated.
Teladoc’s two main divisions also had mixed results in the first quarter. Integrated care saw an 8% revenue increase to over $377 million, while BetterHelp experienced a 4% decrease to $269 million. Looking ahead to the second quarter, Teladoc provided guidance of $635 million to $660 million in revenue, with a projected net loss per share ranging from $0.35 to $0.45. These figures fell short of analyst estimates, which predicted higher revenue and a lower net loss per share.
Overall, Teladoc Health continues to face challenges as it navigates the evolving telehealth landscape. The company’s performance in the first quarter and guidance for the second quarter suggest that it may struggle to regain its previous levels of success, leading investors to trade out of the stock.